Loans for the unemployed are currently very popular. Since the application is filed online and with only a few documents, it is simple and fast. Amounts borrowed are relatively low (up to the so-called micro-loans ) and are borrowed for a short time. Unemployed people have to live with an absolute minimum from which they would have to repay the loan, so the loan for the unemployed is low.
Loans to the unemployed are mainly offered by non-banking institutions, as well as quick loans without proof of income. For banking houses, an unemployed person or a person without a constant income is a risk. In general, without provable income, companies do not want to lend too much to applicants. However, a large number of loans can still be found on the market where there is no need to prove income. But such a loan without proof of income has its pros and cons.
Without proof of income, a loan for the unemployed is risky for both sides. Without sufficient or regular salary, there is a high risk of repayment problems, and even the lender (lender) does not know whether the loan will be returned to him. That is why quick loans for the unemployed are often at high interest rates.
The applicant is not only exposed to high interest, but also to potential debt traps. If the applicant does not have a regular income or is facing distraint, he may not have sufficient funds to repay the loan. It is therefore necessary to think whether this loan pays off. If the applicant is able to repay the debt, it is a quick acquisition of money by a non-bank loan.
How to get a loan for the unemployed
The conditions of the loan for the unemployed are:
- identity card (often a second identity card)
- age 18 – 65 years
- own current bank account
- Czech citizenship (sometimes permanent residence in the Czech Republic)
The applicant does not prove his income and is often not checked in the debtors register.
The loan for the unemployed can be processed online, which contributes to the speed of the loan. Often occurs after loan approval to acquire borrowed money almost immediately. Loans for the unemployed are not immediately unusual.
It should be borne in mind that this loan contains a lot of fees and interest. Compared to a classic bank or non-bank documented income document, the loan for the unemployed is highly interest-bearing. If the debtor fails to repay on time, he is subject to high penalties.
It is therefore important to monitor the following parameters :
- APR (Annual Cost Percentage Rate)
- interest rate
- the amount of other related charges
The APRC includes all fees, such as contract, account maintenance or credit management fees.
Many fraudsters are still on the market. The applicant should on the company to find out more information. It is helpful to read reviews from people who have also borrowed here before. It also pays to compare multiple offers from different providers.
Non-bank loans for the unemployed and foreclosure are very risky non-bank loans.
The offer is limited for these unemployed loans and those companies that offer it can often border on usury. For a non-bank loan for the unemployed, it is definitely appropriate to get as much information about the company and read as many reviews.
On a similar principle to this quick loan for the unemployed, there are SMS loans, weekend loans or indebted loans. If the applicant needs a quick loan without proof of income to cover another debt, he / she should consider a different solution. Instead of another loan, it is appropriate to address the consolidation of existing loans or their refinancing. An overdraft facility may also be an option.